US Georgia Gulf stock plummets nearly 9% to $28.38/share

18 May 2012 22:34  [Source: ICIS news]

HOUSTON (ICIS)--The share price of US polyvinyl chloride (PVC) producer Georgia Gulf plummeted nearly 9% on Friday, prompting the New York Stock Exchange (NYSE) to request the company to issue a statement on the “unusual market activity”.

The company’s stock fell to $28.38/share at the close of the market on Friday. The Dow Jones Industrial Average closed the day at 12,369.38, down 0.59%.

“Georgia Gulf, in accordance with its usual practice, does not comment on unusual market activity or rumours,” the company said in a statement.

Georgia Gulf was recently the target of a hostile takeover bid from Westlake, which offered $35/share for the company.

Westlake’s first bid for the company was $30/share, valuing it at $1bn.

Georgia Gulf’s board rejected the offers, saying they were too low.

Earlier this month, Westlake withdrew its bid for Georgia Gulf and announced it would sell all its stock in the company.

Georgia Gulf reported $35.3m in net income for the first quarter, up from $12.1m in the same period a year ago.

By: Bobbie Clark
+1 713 525 2653

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